Check this chart out

Basically what this chart is telling us is that unless there is a "V" shaped recovery in EARNINGS, the market will easily dump 30% to 50% in relative short order, from an historical point of view.

Even if earnings on the S&P 500 co's STABALIZE (earnings are still in a free fall) at $40 we should at least see a minimum 30% decline from here.

Makes sense?

For what it's worth.

You just proved that the stock markets are being manipulated. If the market was rising on its own merits then earnings should follow the trend.

What is interesting is that there must be a lot of people dumping in a lot of money for some reason that I can't fathom or the gov. is messing with the numbers.

I don't know it it's not good, not to mention with every bond auction our bonds just keep getting weaker.

reply to post by leo123


Unless they're planning on mass hyper inflation. In that case stock prices will rise along with every thing else. No matter, it's being manipulated no doubt about it.

Can you say...Plunge protection team?

Originally posted by leo123

Basically what this chart is telling us is that unless there is a "V" shaped recovery in EARNINGS, the market will easily dump 30% to 50% in relative short order, from an historical point of view.

Even if earnings on the S&P 500 co's STABALIZE (earnings are still in a free fall) at $40 we should at least see a minimum 30% decline from here.

Makes sense?

For what it's worth.

yup the basic line of thinking does to me...

I have been saying this for MONTHS to anyone who will listen

when 3'rd and 4'th Q earings are adjusted downward there will be a stampede out of U.S equity's.....OBAMA will need to put 1,000$ on some type of spending gift card for every citizen to avoid this...but they can't afford that.....WATCH for $ to flow into EMERGING MKTS and create a bubble in stocks there

In case people didn't catch it several MSM stations are doing hour long segments on the "NEW NORMAL" during prime watching hours...regarding the economy

guess what this means.....our standard of living is NOT COMING BACK....

this is not a cycle where the standard of living gets back to where we were....



[edit on 10-6-2009 by cpdaman]

reply to post by cpdaman


So what exactly will be the "new normal". People not having 3 cars in their driveways, not buying the latest and greatest gadget that comes out every 6 months?

You mean people will actually have to live with in their means?

Well it will eventually get back to that if Obama doesn't render us to a third world status with all of his spending initiatives first.

Interesting. It looks like it has to fall if it's going to continue the pattern of that chart.

Standard of living will go down...it already has. Our way of living was built on a lie.

Good times!